tv Taking Stock With Pimm Fox Bloomberg August 11, 2014 5:00pm-6:01pm EDT
>> this is "taking stock of quote for monday, august 11. i'm pimm fox. today's theme is published -- caesar's saying its second-quarter losses of more than doubled. we will discuss what it means with its fight with its creditors. i will introduce you to a company that makes notebook/-- not computer notebooks. the challenges as of 8 -- the challenges of a classic paper notebook in a computerized world.
we will examine the latest content involving some of the media world's largest publishers. all that and more over the next hours will stop first let's get the headlines from su keenan in the bloomberg news room. >> caesar's indeed out with earnings -- net losses widened to more than $466 million. caesar's had only one profitable year since 2008. they have struggled to service $23 billion in long-term debt incurred in a leveraged buyout. jpmorgan is said to be considering moving its headquarters to a new location in new york city because the company now has fewer employees in manhattan according to a person briefed on the discussion. they could move offices to the world trade center or hudson yard. discussion is set to be at an early stage and no decision is imminent. priceline reported better than were cast earnings, saying more consumers are using its website
to land summer trips. lienngs rose 34% to 13.5 dollars and those are your top headlines. but thank you very much. president obama is about to speak on the political crisis in iraq. i want to bring in our chief washington correspondent peter cook will stop what can we expect to hear from the president? >> a very tense political situation in baghdad. you hear the president talk about red lock in washington but it is gridlock in baghdad he is worried about at this moment. the development on the ground today in the last 24 hours, the president of iraq effectively nominating a new prime minister, breaking a political logjam that has lasted about treatment time. that is news the white house has welcomed at the state department has welcomed. the one person who has not welcomed the news is the current prime minister, nouri al-maliki, who went on state elevation early today, late evening
interact and defiantly said he would not accept the nomination of this new prime minister, trying to hold onto power. the question at this point is what happens next? does he cling to power in some other way? is their use of military force or does cooler heads prevailed and is this the beginning of a political reconciliation in iraq which is something the obama administration has been calling or. you can expect the president to express support for the nomination of the new prime minister designate and effectively urge nuri al-maliki to step aside. that is the message we have gotten from the white house and state department. i think that is what we should expect to hear. >> we look forward to getting your is of that and any of a romney president. let's -- and from the president. joining me now is u.s. ambassador to iraq, zalmay khalilzad.
give us your impression of what is the current the jewish and in iraq today. >> i think a new prime minister has been designated. these are made prominent baghdad family and belongs to the same party as mr. maliki but has spent a lot more time in the a phd froms manchester university in the united kingdom, so he is more worldly. mr. maliki has not accepted this nomination. but he is in a difficult political situation because of a substantial part of his own party has defected from him. shiitese joined other in nominating him. he has two choices -- either to use his current opposition to bargain for something for immunity from prosecution, from security, or to use force. i think it is president obama's
shannon is a dumbing statement to deter him from resorting to the use of force. describe the individuals who possess the to effect the change you are describing or those looking to topple the baghdad-based government? lyrically force inside baghdad right now to deter mr. maliki from using use of force are the military commanders and out hours. the military commanders, whether they will carry out the order malik he might give or move against the president or move declareharlem and or to martial law and announced the military leader
of the rack, i don't think these things are, will but you cannot ruled them out. every effort should be made to deter that. you have sunni leaders and kurdish leaders who would have to come together to agree on a new government and a new program that would unite country against terrorists. that's what the obama administration has been hoping to bring about the there are important challenges ahead to achieve that goal. >> you must the details as you know them about isis and their goals. isis is made up of different elements. they are obviously religious extremists and remind me a little bit of they taliban in afghanistan. with one difference -- they have more of a global representation,
meaning american citizens, europeans and others, about a thousand in total have joined them. thistsave some former baa from saddam hussein's era and some sunni tribes committed in number. what they seek is the establishment of what they call an islamic caliphate with the leader of the movement leading the caliphate. opposere a lot of people to this. >> who are some of the powers opposed to this? give us an idea of the countries who have an act of state and what happens. >> the kurds are opposed to it and the shiite majority are opposed to it. community has expressed their opposition to it.
saudi's have expressed thesition to the group, jordanians and israelis -- there is broad opposition to this very ,hreatening, very well financed controlling a large area of terrorist organizations. >> based on your diplomatic experience, is it possible the countries you just described theiragree to focus attention on isis and of the other regional issues? >> that is a diplomatic challenge for the united states. one of the things we need to do is internationalize the effort. not only to the iraqis, the region and the world. >> i'm just going to rake in
because president obama is breaking in from his vacation and i want to give everyone a chance to listen. die -- usaidsa disaster response to help. some have begun to escape their hurt on that mountain and we are working to develop options to bring them to safety full top -- to safety. i want to thank the united kingdom, france, and other countries working with us to provide much-needed assistance to the iraqi people. -- this advances the limited military objectives we have outlined in a rack, protecting innocent citizens, providing advice and assistance to iraqi forces as they battle these terrorists, and joining with international partners to provide humanitarian aid. i authorized these operations, there is no american military solution to the crisis
in iraq. the only lasting solution is for a rack to come together and form an inclusive -- is for a rack to come together and form an inclusive government and unified countries fight. today, they took a promising step forward in this article effort. last month, the iraqi people name a new president. today, the president named a new prime minister designate. the iraqi constitution, this is an important step toward forming a new government that can unite iraq's different communities. calledsident biden and i him to congratulate him and urged him to form a new cabinet as quickly as possible all stop one that is inclusive of all iraqis and represents all iraqis. we pledged our support to him and the president and the speaker as they work together to form the government.
urge all iraqi political leaders to work peacefully through the political process in the days ahead. this new iraqi leadership has a difficult task. it has to regain the confidence of his citizen by governing inclusively and taking steps to demonstrate true resolve. the united states stands ready to support a government that addresses the needs and grievances of all iraqi people. we are ready to work with other countries in the region to deal with the humanitarian crisis and counterterrorism challenge in iraq. that will be easier once this new government is in place. these have been difficult days in iraq, a country that has face many challenges in its recent history. i'm sure there will be difficult days ahead. but the united states will remain vigilant against the threat goes by isis. we stand ready to fight with iraq against these terrorist forces.
without question, that will be advanced if iraqis old on today's progress and come together to support a new and inclusive government. thank you, everybody. you have been listening to president obama speaking from kate cod. ,oining me is zalmay khalilzad the former u.s. ambassador to iraq all stop he joins me from washington. you heard the president loss comments -- the president assad comments. do his words carry any force with the various political parties inside iraq today? >> it's very encouraging to the prime minister and there is a wording there for prime minister maliki. the united states has with their weight behind the prime minister designate all stop he also sent a message to mr. maliki that the
u.s. is with him and anything he would be atse that the expense of any future relations he might expect to have with the united states and the u.s. would be opposed to him. >> we are going to continue the conversation have more with ,mbassador zalmay khalilzad former u.s. ambassador to iraq. stock thoseing quote on bloomberg. ♪
also joining us is our chief washington correspondent, peter cook. any more detail from what we heard from the president and what he said about his support for a new prime minister in iraq customer >> it was noticeable that he did not mention real maliki by name. to thespoken directly new prime minister designate and it is clear who the united states is banking on and it is not nouri al-maliki. trying to send a clear message where the u.s. is and we heard over the last couple of days, tying u.s. support and international support to the iraqi government on the notion that government has to move toward in this lyrical process. there has to be some sort of push toward reconciliation between these various factions. without it, it might make a year difference. since thedor,
president focused on the new prime minister of point i the president, what can you tell us about the personality of nouri al-maliki? nuri l maliki has been prime minister for eight years. he is a very stubborn guy. foras done some good things his country, when he stood up to the militias. >> have you met him personally? >> yes. i was ambassador when mr. maliki became the prime minister and i worked with him for over a year and half. i know him white well and i also know the nominee to be prime minister who is more worldly and has spent more time in the last.
he's a graduate of manchester university and the united kingdom. he's also from the same party as mr. maliki. >> why has it taken the united states so long to be involved at this level in light of the crisis with isis reach this point without any seemingly strategic plan? >> i think the rise of isis has come as a surprise. the rapidity of this rule has taken on areas in syria and iraq as well as enormous natural resources. --, water, power generation this is the result of two developments, one, the situation they are inre
opposition and came under increasing influence of war extremist elements and the circumstances became very extreme. highlight a lack of u.s. policy in regards to syria? indicated a rise that was in part a result of lack of u.s. strategy with regard to syria, especially in regards to supporting moderate opposition and a result of total u.s. withdrawal. it became more sectarian and the significant disengagement finished asaq was far as the engagement is concern in those factors came together to produce the situation we face
and analysis desk for the gaming industry. let's talk about caesar's and -- they've got a big debt overhang. anything they talk about has to be related to the debt outstanding. >> much do they have out? currently about $26 billion in debt outstanding. >> 26? >> that's right. it is split between three entities. the debt is currently sustainable at two out of three entities and the third entity is currently the one where it has a lot of investor focus which has about $19 billion of debt. of the 26lion out elliott? what about the business of caesar's? is it making enough to pay it off? >> two out of three are. you don't need me to tell you that the math doesn't work there and there needs to be a holistic
solution. that structure needs to be fixed. the company has indicated they will be willing to work with lenders toward achieving that, but we are waiting to see how and when because with that kind of debt and a lot of crossownership, it is a gold proposition. >> a waiting game i comes to caesar's. atlantic city. >> we are probably talking five or six years ago. and sees ubiquitous now gaming expanding in new york state. it's a tough environment and we are seeing capacity reduced. >> how much does it go for? >> sounds like there were no bids at this point. >> no bids for something that cost $2.5 billion? >> you are probably talking about a million dollars a day in off redding cost. that might be the next path will
>> for a look at the market moving headlines, let's go to su keenan newsroom. >> let's start off with chiquita brands -- they received a unsolicited $611 million unsolicited takeover proposal. chiquita would have to scrap its pending merger with its irish competitor. cofounderssociates charles wang is being sued by a
group of investors who say he backed out of a deal to sell them the new york islanders hockey team for $420 million. they want a judge to order wine to settle them -- the team or to pay a breakup fee. andrew rory mcilroy's one-stroke win over phil mickelson at the pga championship earned a 36% higher television rating on cbs compared to last year. of xs seen in an average percent of homes according to cbs. >> amazon.com taking on disney in its quest to gain more control over pricing on the internet of the the e-commerce "ant has locked reorders of captain america, the winter soldier" and other titles that come on dvd form. amazon has used this tactic in s,cent disputes with other
like book publisher has shut. my guest covers amazon.com and joins us from los angeles. paul sweeney from bloomberg intelligence. layout exactly what is so contentious between disney and amazon. are usually and artifice for retailers to drive traffic to the store. so rick and mortar retail offers , that means the customers going to come in and pick up the item they pre-ordered and that means they may refill their basket with other stuff will stop pre-orders have increasingly been used and increasingly capture more share for the online retailer like amazon. amazon is looking to get a price break on dvds from all the studios. they started with order and are moving on to disney.
it looks like they might have gotten a concession from warner bros.. , so they not budging are fighting back saying your new movies are not going to show up as pre-orders. the dvdl be there when comes out that they will not be there as a pre-order which means first a sales will suffer and will get as much word-of-mouth and probably not sell as many dvds in the advocate -- in the aggregate. >> how much money are we talking about? how much money is amazon get if they sell a dvd of a disney movie? >> it's not really a big moffet hunter. it is a is this for amazon but from the disney perspective it is interesting because the physical dvd business isn't nearly what it used to be and has declined of the last 10 years. it still a meaningful business for hollywood studios but a bigger part of their home theater and home entertainment business is digital. it is still an important business for disney.
probably going to negotiate aggressively here but at the end of the day, they will amazon an agreement with which compares to hash at -- if they make or break deal for them and the whole publishing business in general. amazon has a tremendous amount of leverage there. disney has more leverage some of publishing sector but it is a deal they want to get done. ask what kind of money is involved? is makeis right that it or break. they get one bite at the apple in their core businesses selling books when published in the studio's core business is the exhibition of film. you are probably talking in the $8 billion to $10 billion market, amazon probably has 10% share. disney is probably 15% or 20% of we are talking
about pre-orders only -- maybe $5 million. leaving amazon is million dollars or $2 million on the table and getting a hundred times that in free publicity on this show. but what about the stock of amazon.com. -- of are they going to be able to increase their margins? >> i have a neutral rating because no matter what they do on the gross rough outline, and they are generating a ton of $15s rough it, literally billion or $16 billion. they managed to spend on something else. they are spending it on trying to be more consumer friendly and delivering more products more rapidly. i buy into the book written by your colleague, brad stone. he is a consumer facing ceo it is not looking at investors. he's looking at consumers and cares about winning his
customers heart and wallet share and ultimately i think will turn on the taps and make honey but i don't think it is a this year event. i have a neutral on it. >> amazon, if they keep the strategy up, are they going to go head-to-head against every studio or are they just going to take the disney deal? >> i think they will go up against every studio. warnerve a contract with bros., the number one film and television production studio, so they've got the big-name done first. we are not sure what the terms are but they will go to every studio and have the same discussion with them. it will be a question of how important is the physical tbd business to each studio and it is becoming less important over time but it is important for disney because moms and kids still buy lots of dvds. >> and this will not change for streaming because they have a big streaming business. >> amazon has amazon prime.
it will factor into it because disney and amazon do lots of his nose across lots of different lines. there are lots of relationships across the two companies and that will factor into it and it's one of the reasons we will get a deal done before these films come out of stop -- these films come out. >> thank you for joining us. another top technology story has to do with buzz feed's-or $50 million -- $50 million new investment on today's bloomberg.com. new investors for buzz feed. let's find out about a thing were to build a powerful computer to give the federal realtors at the securities and exchange commission a fuller view on how the markets really work. the computer will be called the consolidation audit trail. largestbe one of the databases in the world. will attract everyday stock
quotes? who is going to make it and what does it mean for market transparency? let's find out more from the chief executive of better markets, a nonprofit, nonpartisan independent watchdog of wall street. what this supercomputer is designed to do. thank you. nice to see you. are supposedarkets to be the jet fuel that propels our economy forward and hours entered of living. it is built on a level playing field and modest regulation to make sure purchasers, sellers and investors are treated fairly. large parts of those markets are dark and regulated stop -- regulated. it would be is if a major city had no electricity or no police and only the rebels or predators would have eyed vision goggles. so what the consolidated audit
is a computer system that brings light to the cities and brings regulation and brings regulation but the cops back on the wall street the. that way, investors, buyers and sellers in the markets would be on a level playing field, they would be lit markets. >> can you give us an idea about the actual construction of this computer? >> unfortunately, the way the fec has decided to do this is to outsource it to the self-regulatory organizations and exchanges. the bad thing about that is that it has built-in conflict of interest because the exchanges make a great deal of money off of high-frequency trading and other activities. they have a competing system, yet the sec has asked those ftc hastions -- the
asked those organizations to submit a proposal to the sec as far as who will ilda and put in place this massive, unprecedented computer system. they are supposed to deliver the recommendations in september but they are already a year-and-a-half behind. they have had two extensions already and it's already taken way too long. >> would you be in partnership a to putdra -- with finr together a system so you don't turn off the old system? how do you get around these competing interest? sec should have done is hire someone independent to seek independent bid to control the conflicts of interest. there he have a -- they have a system where finra will pick they winner and they are putting
themselves, the haute system will be obsolete if in fact the new system comes into place. it is incredibly important that they get this right. if you look at the flash crash in may of 2010, $1 trillion in market value disappeared in about 10 minutes and like a bungee cord, snapped back 10 minutes later. but airing that harrowing time, he engle share of apple computer as sold for about a penny well as for $100,000. that's just wrong. so you have investors fleeing the market and companies who do not have confidence -- you do not have confidence in the markets, so you have dark markets with them unlevel playing field. the sec has to get this right and get rid of the conflicts of interest and they have to start moving at the speed of the markets and acting like they are in the 21st century. they are acting like they are in the 19th century.
this will not be online until 2018 at the earliest. >> we are going to have to hopefully wait for something sooner two, long before 2018. ,hank you, dennis kelleher joining us from washington. coming up, i will introduce you to the cofounders of a company called barren fig. they are creating a handcrafted note hook looking to make a big splash in a digital age. that's next on "taking stock." ♪
>> this is "taking stock those quote on bloomberg. i'm pimm fox will stopper member the old days when notes were written on paper in notebooks? there and figure members this. they launched a kickstarter campaign to begin a company that produces high-end, well-crafted notebooks without the goal was to raise a mere $15,000 but they ended up raising over $160,000.
-- i'm joined by the cofounders, adam kornfield and joey cafone. you do know that it is a digital age. >> we were told that. >> you understand there is this thing called the internet that you ventured from the world of wall street to make notebooks. why did you decide to go into this? >> this is a company that's all about encouraging the makers. . people making things and creating things. we took a poll amongst ourselves as people we talk to and yes, there are things called smart phones, tablets, we have heard of them. but we found people actually making things do their idea thinking in a book. so we want to encourage that will stop our journey is all about encouraging people to make it will stop the notebook is the core item in your toolkit, so that's why we started with notebooks.
poll and founda that everybody would be happy to use a note hook to write down their ideas, draw their plans for a new business and so on. how did you get involved? >> i'm a graphic designer and i noticed when i was in art school, there's a wide disconnect tween the tools been used. we have lap tops and computers, your digital enter catalog -- digital and your analog. everyone was using lap top and computers. but before that, all the notebooks were different. we were single different sizes and brands. those years of art school, i kept asking myself why haven't we found the analog to answer this problem? i know graphic designers and creative i know start the process in a note hook and move to digital once they know where they are headed.
>> so you decide this is the way you want to go -- you want people to start writing and drawing. what do you do about creating the notebook itself stop it's a manufacturing process. >> it is a manufacturing process. the journey started about a year ago or so and we talked about how we wanted to bake a notebook in particular. -- make a notebook. we asked i've hundred thinkers around the world and we asked what would you like in a note hook? we got about 80% of people who wrote back with all sorts of ideas. all theally took feedback we got in addition to our own feedback to craft what is the confidant. >> that the name of this notebook. now you're going to have brand extensions and extend the conversation because we're going to have more with the cofounders baron fig.ig --
>> this is "taking stock" on bloomberg. i was speaking to adam kornfield and joey cafone -- they want to put a dent into the digital world. i noticed that neither of your fig. are baron why did you decide that was the name for the company? >> i'm going to let joey take that one. >> it came about by accident. we came up with the name relatively fast and i immediately wanted to change it because it had no meaning. when we are a company about creating -- >> how did you come up with that name? were you looking in the actuary? >> i will tell you the real story. my girlfriend's last name is ba
ron, and i love the idea of a barren, several from her. i said i love the word, but we need something more. scott immediately goes how about fig? we looked and said what does it mean? he said i don't know and left us. the next day i went to san francisco on vacation this plagued me the whole time because i needed to have meaning . i like the name but i don't know why. i came up with like a hundred names -- adam and scott shut down all the names. let's find out the etymology of baron and it turns out that it is arrived from the symbol of apollo and the figure is derived from the symbol of dionysus. two sides of the same coin -- discipline and chaos. it's those two factors fueling the creative process. >> which one of you is the discipline and who is the chaos?
-- if you sawy the title cofounder -- it's amazing. >> hell me about making the actual books. what is the paper like and what is the cup -- what the cover like? >> they're made in asia and designed in new york city. the book would not exist if we were not in new york will stop we get a lot of inspiration from the city. >> a book in new york? >> it's all about feedback. a lot of companies may be say that but for us, it really happens. >> what questions could they probably ask? it's a book of link pages. >> we have had lots of startups in new york you bought it will stop names you know. >> they customize the cover? >> yes. facebook but some and customize them, ge did and nike did.
we did not do customization because we want to but they want to give them out for conferences. >> big corporate accounts? >> yes. you can buy them on our website and that's how we prefer it so we can have that conversation. >> what kind of customization can you do? you can maybe do something inside. it all depends on how much money you are willing to pay. --the more basic edition what everyone to put on the book. if you want the bloomberg logo or if you want pimm fox's face on their. >> i don't know about that. >> the minimum is 100 books and up from there. mapbody was looking to do a on the inside cover with the logo on the outside as a giveaway for a promotional campaign. other companies we have a different addition that you can't customize. ask say you want to buy 100. how much? >> $1809.
>> in designing all of this, with or something you would like to see? is there a joey cafone edition? >> i think everyone is joey cafone edition. >> you could print essential information in these books. >> we have the capability of doing anything you want. the reason adam did not give you a number is we could do one color, two colors, $100. >> you can do anything? can you change the color of the paper? what's next, the pen or pencil? what do you think western mark don't have to wait for that one? >> go to our website and sign up for our e-mail list. x tank you very much. fig.ofounders of baron it is the six minutes after the hour enemies we are on the markets.
>> live from pier three in san francisco, welcome to bloomberg west, lori -- where we cover business, technology and the future of business. had this hour, buzz feed is building serious was for itself stop the website famous for its list and viral content just raise $50 million from andreessen horowitz will stop they will be using the money to build its movie studio and expand overseas. amazon takes aim at disney, rocking -- locking pre-orders of dvds like the new